Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) PNG Productive Partnerships in Agriculture (P110959) EAST ASIA AND PACIFIC | Papua New Guinea | Agriculture Global Practice | IBRD/IDA | Specific Investment Loan | FY 2010 | Seq No: 8 | ARCHIVED on 06-Dec-2015 | ISR21284 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:29-Apr-2010 Effectiveness Date:07-Feb-2011 Planned Mid Term Review Date:28-Oct-2013 Actual Mid-Term Review Date:12-Nov-2013 Original Closing Date:30-Jun-2016 Revised Closing Date:30-Jun-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to improve the livelihoods of smallholder cocoa and coffee producers through the improvement of the performance and the sustainability of value chains in cocoa- and coffee-producing areas. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL Revised PDO is to improve the livelihoods of smallholder cocoa and coffee producers supported by the project. Components Name Institutional Strengthening and Industry Coordination:(Cost $13.70 M) Productive Partnerships:(Cost $21.10 M) Market Access Infrastructure:(Cost $20.20 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 12/6/2015 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) Implementation Status and Key Decisions The Project is making progress towards the achievement of the Project Development Objective (PDO), which it is expected to attain by the closing date of 30 June 2019. The number of beneficiary farmers has now increased to approximately 33,967 as of June 2015, and with the upscaling of existing partnerships and preparation of new partnerships, this number is expected to increase substantially over the coming year. There is strong ownership and continued enthusiasm for the innovations inherent to the productive partnership approach. The productive partnership models are regarded as the way forward for reviving the coffee and cocoa industries. Partnerships are not only supporting improved productivity and market access, but are also committed to addressing the social dimensions of farmers’ livelihoods. The construction of one feeder road has been completed, and the bidding process has closed for several more roads. The latest implementation support mission took place in November 2015, and the next will take place in April-May 2016. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Substantial  Substantial Stakeholders  --  Low  Low Other  --  --  -- 12/6/2015 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Number of project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 27352.00 33967.00 60000.00 Date 29-Apr-2010 30-Apr-2015 30-Jun-2015 30-Jun-2019 PHINDPDOTBL  Number of female project beneficiaries (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8550.00 11850.00 24000.00 Date 29-Apr-2010 30-Apr-2015 30-Jun-2015 30-Jun-2019 PHINDPDOTBL  Number & coverage of partnerships implemented and/or scaled-up and likely to be sustained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 32.00 50.00 Date 29-Apr-2010 30-Apr-2015 30-Jun-2015 30-Jun-2019 Comments The number of partnerships as of 30 April 2015 was 34, not 33. Subsequently, two coffee partnerships were suspended due to alleged ineligible expenditures/fraudlent conduct. PHINDPDOTBL  Net income of smallholder coffee growers (in PNG Kina) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2000.00 4085.00 3280.00 3700.00 12/6/2015 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) Date 30-Jun-2012 31-Dec-2014 31-Dec-2014 30-Jun-2019 Comments The figure for 2014 was revised taking into account better data from the final quarter. This figure will next be updated in 2016, to take into account the full year for 2015. PHINDPDOTBL  Net income of smallholder cocoa growers (in PNG Kina) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 1674.00 1370.00 1800.00 Date 30-Jun-2012 31-Dec-2014 31-Dec-2014 30-Jun-2019 Comments The figure for 2014 was revised taking into account better data from the final quarter. This figure will next be updated in 2016, to take into account the full year for 2015. PHINDPDOTBL  Cocoa yield among project beneficiaries (kilograms/hectare) (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 169.00 376.00 376.00 600.00 Date 30-Jun-2011 31-Dec-2014 31-Dec-2014 30-Jun-2019 Comments This indicator is measured on a per annum basis, and will next be updated in 2016 to reflect the full 2015 year. PHINDPDOTBL  Coffee yield among project beneficiaries (kilograms/hectare) (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 382.00 816.00 816.00 600.00 Date 30-Jun-2011 31-Dec-2014 31-Dec-2014 30-Jun-2019 12/6/2015 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) Comments This indicator is measured on a per annum basis, and will next be updated in 2016 to reflect the full 2015 year. Overall Comments Intermediate Results Indicators PHINDIRITBL  Number of hectares of cocoa replanted or rejuvenated with improved planting material and applying improved practices (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3328.00 3958.00 15000.00 Date 29-Apr-2010 31-Mar-2015 30-Jun-2015 30-Jun-2019 Comments The latest data available for the cocoa component shows that as of 30 June 2015, farmers had cumulatively rejuvenated 2,498 ha of cocoa, and had cumulatively replanted a further 1,460 ha of cocoa - bringing the total for this indicator to 3,958 ha. The relatively slow progress can be attributed to the difficulty in securing planting material for the new hybrid clones, which is due to (i) the increased cost of clone seedlings relative to what was budgeted; (ii) low production by the CCIL nursery whose seedlings were damaged by ash from a volcanic eruption in August 2014; and (iii) slow development of budwood gardens and nurseries in the partnerships. In the short term, this issue is being addressed by providing each beneficiary with 200 clone seedlings using the EU financing. In the long term, the project is supporting various nursery models to produce sufficient planting material. PHINDIRITBL  Number of hectares of coffee applying improved management practices. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10737.00 10737.00 15000.00 Date 29-Apr-2010 31-Dec-2014 30-Jun-2015 30-Jun-2019 Comments There are a number of different improved management practices that farmers can apply to their coffee farms, including recycle pruning, maintenance pruning, weed control, and shade management. The coffee PMU reports on each of these individual, and to date the PCU has been added the hectares for each type of management practice together. However, this raises the risk of double-counting, if a farmer has applied more than one type of management practice on his land (e.g. both weed control and maintenance pruning). Therefore, the PMU and PCU will revisit the figures to ensure that the risk of double-counting is minimized. In the interim, the result will be maintained at the figure for end 2014 (10,737 ha). 12/6/2015 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) PHINDIRITBL  Km of rural roads rehabilitated and maintained as per Maintenance Agreements (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 0.00 0.70 200.00 Date 29-Apr-2010 30-Apr-2015 31-Oct-2015 30-Jun-2019 Comments Call 1 and 2 partnerships identified 53 coffee and 41 cocoa roads/infrastructure assets for upgrading, which were subsequently scoped, costed, analysed for cost/benefit ratio, ranked for prioritization, and submitted to the respective ICC for funding approval. This process took substantially longer than anticipated. Implementation was also delayed due to uncertainty over GoPNG’s internal procurement procedures. Now that the these procedures have been clarified, and the 18 roads approved for rehabilitation have been identified, progress is expected to accelerate. Construction on the first road (cocoa component) has been completed, and tenders have been received for a number of other roads. Construction of the 18 roads is expected to be completed by the end of 2016 but these will only account for 57.6 kilometres. The roads under Call 3 and 4 partnerships will add to this total: they have not yet been scoped and costed, but are unlikely to make up the shortfall of 142 kilometres required to meet the target - particularly given that the cost-per-kilometer of road has increased substantially since the project was approved. The project will need to consider revising this target. PHINDIRITBL  No. of women benefiting from improvements in production, marketing & livelihood, including participation in functional literacy/numeracy & nutritional improvements linked to farming-as-a-business & ma (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8550.00 14474.00 40000.00 Date 29-Apr-2010 30-Apr-2015 30-Jun-2015 30-Jun-2019 PHINDIRITBL  Number of hectares of cocoa planted with diversified crops (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 917.00 7000.00 Date 29-Apr-2010 -- 30-Jun-2015 30-Jun-2019 Overall Comments Data on Financial Performance Disbursements (by loan) 12/6/2015 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P110959 IDA-47160 Effective XDR 16.40 16.40 0.00 8.16 8.24 50% P110959 IDA-54110 Effective XDR 19.60 19.60 0.00 0.00 19.60 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P110959 IDA-47160 Effective 29-Apr-2010 09-Aug-2010 07-Feb-2011 30-Jun-2016 30-Jun-2019 P110959 IDA-54110 Effective 28-Feb-2014 10-Apr-2014 25-Feb-2015 30-Jun-2019 30-Jun-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 12/6/2015 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report PNG Productive Partnerships in Agriculture (P110959) P146003-ADDITIONAL FINANCING FOR PRODUCTIVE PARTNERSHIPS IN AGRICULTURE 12/6/2015 Page 8 of 8 Public Disclosure Copy